Shoppers' Stop IPO on hold

The Securities and Exchange Board of India (Sebi) today directed the Mumbai-based Enam Financial Consultants to put Shoppers' Stop's initial public offer (IPO) on hold till it received further instructions. Enam Financial is the manager of the issue.

Sebi said it had received a fax today from a Guwahati High Court advocate, forwarding an order of the court directing Sebi not to open the public issue.

The Burrabazar Investors' Welfare Association (BIWA), a Kolkata-based body, today moved a writ petition challenging the IPO before at the Calcutta High Court. However, no order was passed and May 10 was set as the next date for hearing.

The Shillong High Court Bench passed the order on a case filed under Section 274 (1G) of the Companies Act in response to a petition filed by the North East Investors' Association (NEIA).

In both the cases, investors accused the Rahejas, promoters Shoppers' Stop, of failing to hold annual general meetings of firms controlled by them and of not filing annual reports for several years.

The other Raheja companies cited include East Lwan Resorts and Mass Traders Ltd.

In the petition, the Burrabazar Investors Welfare Association said Ravi Raheja, Chandra Raheja and Neel Raheja -- the directors of Shoppers' Stop -- should not be permitted to float a public issue as they were legally handicaped.

Shoppers' Stop has plans to issue 6,946,033 shares priced between Rs 210 and Rs 250.